ATN sells 46.9-MW U.S. solar portfolio to CleanCapital

ATN announced that its subsidiary Ahana Renewables has entered into an agreement to sell its distributed generation solar power systems in Massachusetts, California and New Jersey to CleanCapital, a financial technology investor in clean energy. Ahana owns and operates 28 commercial solar projects at 60 sites with an aggregate 46.9 megawatts of electricity generating capacity. The estimated total transaction value is $122 million, inclusive of debt assumption and subject to certain estimated post-closing adjustments. ATN purchased these assets on December 24, 2014 at a transaction value of $103 million. As of June 30, 2018, we estimate these assets have generated unlevered free cash flow (income from operations less capital expenditures) of $53 million.

“We are pleased that CleanCapital has recognized the quality and value of these solar power facilities developed and operated by the team at Ahana,” said Michael Prior, CEO. “This sale allows us to capture an attractive return on our initial U.S. solar investment, while we continue to invest in and operate solar power facilities in other markets and look for additional opportunities. The U.S. market has seen increasing consolidation and the formation of large portfolios backed by large institutional and industrial funding. At ATN’s size and return requirements, this is a market environment where it made sense for us to recycle capital and deploy it in less commoditized situations where we have the opportunity to create additional value.”

ATN and Ahana were advised by Media Venture Partners and Morgan, Lewis & Bockius on this transaction, which is expected to close in the fourth quarter of this year.